Last year Christine worked as a consultant. She hired an administrative assistant for $15,000 per year and rented office space (utilities included) for $3,000 per month. Her total revenue for the year was $100,000. If Christine hadn't worked as a consultant, she would have worked at a real estate firm earning $40,000 a year.For Christine to earn a normal profit as a consultant, her accounting profit would have to be ________.
A. $9,000
B. $0
C. $51,000
D. $40,000
Answer: D
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Price ceilings can be used to lower usurious interest rates.
Answer the following statement true (T) or false (F)
Property owned by everyone is generally referred to as
A) social property. B) free property. C) common property. D) natural property.
A good’s marginal social cost is defined as its
A. marginal private cost minus the value of any detrimental externality. B. incidental cost. C. marginal private cost plus the value of any taxes paid on its production. D. marginal private cost plus its incidental cost.
The Keynesian equilibrium is defined to be when:
A. planned investment is equal to domestic consumption. B. planned inventories equal to actual inventories, which leads to national net income equal to planned aggregate expenditure. C. planned inventories equal to actual inventories, which leads to national income equal to planned aggregate expenditure. D. planned spending is equal to expected spending from households.